Top push ad networks

Payout Models in Affiliate Marketing

Anna Mardas
01 May 2024

Understanding payout models in affiliate marketing is essential as CPA networks offer a range of payout models – from CPC (cost-per-click) to Revshare – catering to different offer specifics and marketing objectives.

Let’s delve into the payout model’s meaning and how to effectively apply each one depending on the situation.

What are Payment Models in Affiliate Marketing?

Let’s get to the heart of the matter: common affiliate models in CPA networks. There are 6 types of such payout models: CPC, CPA, CPL, CPI, CPS and RevShare.

CPA (Cost Per Action)

In the CPA model, affiliates are rewarded when a user not only clicks on the affiliate link but also completes a certain action. These actions can include making a purchase, signing up for a newsletter, or subscribing to a service. So, if an affiliate is promoting a software company and a user signs up for a trial, the affiliate is compensated for that action.

CPL (Cost Per Lead)

This model compensates affiliates for every lead generated. A lead is defined as a potential customer who shows interest in a product or service by sharing contact information. 

There are 2 types of the CPL model: 

  • SOI (Single Opt-In) – users only need to perform a single action like sharing an email address;
  • DOI (Double Opt-In) – users need to confirm their action (like clicking a link in a confirmation email). For instance, if an affiliate is promoting a sweepstakes offer and a user provides contact information and leaves personal data, the affiliate is rewarded.

CPI (Cost Per Install)

This payout model applies specifically to mobile apps, where marketers are paid for each app installed by a user. It’s frequently seen in the mobile gaming industry. For instance, if an affiliate is promoting a new mobile game and a user installs this game through their referral, the affiliate earns a commission.

CPC (Cost Per Click)

According to this model, affiliates earn a commission every time a user clicks on their advertising link. So, if an affiliate promotes a product through a blog and a reader clicks on the link, the affiliate receives a commission for that click. This is often used in the realms of paid search and display advertising. For example, a fashion blog affiliate might earn based on the number of clicks on the links to a new line of clothing.

CPA networks rarely operate on a CPC model, while affiliates commonly use this model to purchase traffic in advertising networks. An alternative to the CPC model in ad networks for advertisers is the CPM model. In this case, affiliates pay for impressions rather than clicks.

Learn more about the differences and advantages of these models in our article.

RevShare (Revenue Share)

Upon the revenue share model in affiliate marketing, advertisers receive a portion of the income that an advertiser makes from customers referred by the affiliates. This is a popular model in online retail or gambling businesses. For example, an affiliate promoting an online casino might receive a 30% share of the revenue generated from players who deposit money via the affiliate’s referral link.

What are the Reasons for Different Payout Models?

Payout amounts by different business models differ as each is on par with a certain stage of the sale funnel. Naturally, it’s much easier to encourage users to click on the ad than turn them into leads. As a result, affiliate networks pay less for CPC offers than for CPA or CPL offers when the conversion requires a specific action from the consumer. 

CPS and RevenueShare are the most complex models as the conversion is considered a sale or merchants’ profit, respectively. 

Which Payout Model in Affiliate Marketing is Best?

Choosing the right revenue model is complex and highly dependent on the specific goals of the affiliate marketer, as previously discussed.

To shelve specifics for all described models, we have complied detailed insights on each of them. 

Revenue ModelPayout conditionDifficulty levelSuitable verticalBest use case
CPA (Cost Per Action)Purchase
Signup
Leaving information, etc.
Depends on the chosen actionMost verticalsAdvertisers have a clear understanding of their customer acquisition costs and want to pay a defined price for each action
Revshare (Revenue Share)Affiliates get a portion of the revenue from sales or users’ deposits⭐⭐⭐⭐⭐Gambling
Betting
Finance
Affiliates can earn revenue over the lifetime of the customer referred if the product or service has high repeat purchase rates. 
CPL (Cost Per Lead)Signing up
Leaving information
⭐⭐⭐Sweepstakes 
Nutra 
Dating
The company work on a lead generation basis. 
If the goal of the business is to collect potential customers’ contact information for further nurturing and eventual conversion, this model works best. 
CPI (Cost Per Install)Installs⭐⭐⭐⭐Mobile content
Extensions
The offer is a mobile app. 
If your business is about promoting a mobile app and increasing its user base, this model would be the best choice.
CPC (Cost Per Click)Clicks⭐⭐— This model is ideally suitable for new websites or platforms that are looking to quickly expand their reach

Related Articles:

Anna Mardas
Anna Mardas brought together her background as a copywriter in digital marketing. Now, she's got a solid grasp on affiliate marketing, especially when it comes to understanding the following niches: Gambling, Adult, Dating, Sweepstakes and Crypto. Anna stands out for her thorough research and insightful reviews of ad networks, offering her readers valuable knowledge.

Understanding payout models in affiliate marketing is essential as CPA networks offer a range of payout models – from CPC (cost-per-click) to Revshare – catering to different offer specifics and marketing objectives.

Let’s delve into the payout model’s meaning and how to effectively apply each one depending on the situation.

What are Payment Models in Affiliate Marketing?

Let’s get to the heart of the matter: common affiliate models in CPA networks. There are 6 types of such payout models: CPC, CPA, CPL, CPI, CPS and RevShare.

CPA (Cost Per Action)

In the CPA model, affiliates are rewarded when a user not only clicks on the affiliate link but also completes a certain action. These actions can include making a purchase, signing up for a newsletter, or subscribing to a service. So, if an affiliate is promoting a software company and a user signs up for a trial, the affiliate is compensated for that action.

CPL (Cost Per Lead)

This model compensates affiliates for every lead generated. A lead is defined as a potential customer who shows interest in a product or service by sharing contact information. 

There are 2 types of the CPL model: 

  • SOI (Single Opt-In) – users only need to perform a single action like sharing an email address;
  • DOI (Double Opt-In) – users need to confirm their action (like clicking a link in a confirmation email). For instance, if an affiliate is promoting a sweepstakes offer and a user provides contact information and leaves personal data, the affiliate is rewarded.

CPI (Cost Per Install)

This payout model applies specifically to mobile apps, where marketers are paid for each app installed by a user. It’s frequently seen in the mobile gaming industry. For instance, if an affiliate is promoting a new mobile game and a user installs this game through their referral, the affiliate earns a commission.

CPC (Cost Per Click)

According to this model, affiliates earn a commission every time a user clicks on their advertising link. So, if an affiliate promotes a product through a blog and a reader clicks on the link, the affiliate receives a commission for that click. This is often used in the realms of paid search and display advertising. For example, a fashion blog affiliate might earn based on the number of clicks on the links to a new line of clothing.

CPA networks rarely operate on a CPC model, while affiliates commonly use this model to purchase traffic in advertising networks. An alternative to the CPC model in ad networks for advertisers is the CPM model. In this case, affiliates pay for impressions rather than clicks.

Learn more about the differences and advantages of these models in our article.

RevShare (Revenue Share)

Upon the revenue share model in affiliate marketing, advertisers receive a portion of the income that an advertiser makes from customers referred by the affiliates. This is a popular model in online retail or gambling businesses. For example, an affiliate promoting an online casino might receive a 30% share of the revenue generated from players who deposit money via the affiliate’s referral link.

What are the Reasons for Different Payout Models?

Payout amounts by different business models differ as each is on par with a certain stage of the sale funnel. Naturally, it’s much easier to encourage users to click on the ad than turn them into leads. As a result, affiliate networks pay less for CPC offers than for CPA or CPL offers when the conversion requires a specific action from the consumer. 

CPS and RevenueShare are the most complex models as the conversion is considered a sale or merchants’ profit, respectively. 

Which Payout Model in Affiliate Marketing is Best?

Choosing the right revenue model is complex and highly dependent on the specific goals of the affiliate marketer, as previously discussed.

To shelve specifics for all described models, we have complied detailed insights on each of them. 

Revenue ModelPayout conditionDifficulty levelSuitable verticalBest use case
CPA (Cost Per Action)Purchase
Signup
Leaving information, etc.
Depends on the chosen actionMost verticalsAdvertisers have a clear understanding of their customer acquisition costs and want to pay a defined price for each action
Revshare (Revenue Share)Affiliates get a portion of the revenue from sales or users’ deposits⭐⭐⭐⭐⭐Gambling
Betting
Finance
Affiliates can earn revenue over the lifetime of the customer referred if the product or service has high repeat purchase rates. 
CPL (Cost Per Lead)Signing up
Leaving information
⭐⭐⭐Sweepstakes 
Nutra 
Dating
The company work on a lead generation basis. 
If the goal of the business is to collect potential customers’ contact information for further nurturing and eventual conversion, this model works best. 
CPI (Cost Per Install)Installs⭐⭐⭐⭐Mobile content
Extensions
The offer is a mobile app. 
If your business is about promoting a mobile app and increasing its user base, this model would be the best choice.
CPC (Cost Per Click)Clicks⭐⭐— This model is ideally suitable for new websites or platforms that are looking to quickly expand their reach

Related Articles:

Anna Mardas
Anna Mardas brought together her background as a copywriter in digital marketing. Now, she's got a solid grasp on affiliate marketing, especially when it comes to understanding the following niches: Gambling, Adult, Dating, Sweepstakes and Crypto. Anna stands out for her thorough research and insightful reviews of ad networks, offering her readers valuable knowledge.